What is the Federal Maritime Commission (FMC)?

The Federal Maritime Commission (FMC) is an independent U.S. government agency responsible for regulating the international ocean transportation system for the benefit of U.S. exporters, importers, and consumers. The FMC’s primary mission is to ensure a competitive, efficient, and reliable international ocean transportation supply system that is free from unfair practices and unreasonable charges.

The agency was established in 1961 and operates under the authority of laws like the Shipping Act of 1984, the Ocean Shipping Reform Act (OSRA), and related maritime statutes.

What Does the FMC Do?

The FMC’s key responsibilities include:

• Monitoring ocean carrier alliances and vessel sharing agreements (VSAs)
• Ensuring fair competition among ocean carriers and marine terminal operators
• Investigating complaints of unfair practices, including excessive demurrage and detention fees
• Licensing and bonding of ocean transportation intermediaries (OTIs), including freight forwarders and NVOCCs (non-vessel-operating common carriers)
• Overseeing tariffs and service contracts filed by carriers
• Protecting shippers’ rights through the handling of informal and formal complaints

FMC and the Ocean Shipping Reform Act (OSRA)

In recent years, especially after the passage of OSRA 2022, the FMC gained expanded enforcement powers to crack down on unfair fees and protect U.S. exporters and importers from unreasonable ocean carrier practices.

Under OSRA, the FMC now:

• Requires carriers to provide justified, transparent invoicing for demurrage and detention
• Has the authority to launch investigations proactively without waiting for a formal complaint
• Maintains a registry of carriers, terminals, and intermediaries to improve compliance

Example in Practice

A U.S. importer receives a $1,500 detention bill for containers that were not made available for pickup during the free time. The importer can file a complaint with the FMC, which may open an investigation into whether the charges comply with the agency’s guidance under OSRA.